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The purpose of a property management agreement is to create a legal document that is enforceable by the law that outlines the rights and obligations of the landlord and property management company.
What agreement authorizes the property manager to act for the owner? B) The answer is property management agreement. Property management agreements create the authority of the property manager to act on the owner's behalf.>
The management agreement creates a general agency relationship between an owner and the property manager. Unlike real estate brokers' commissions, property management fees may be standardized by local associations.
Property management contracts usually last as long as the property is being rented. Standard leases range anywhere between 3-24 months for residential properties. However, after fixed-term tenancies, it's normal for tenants to go on month-to-month agreements, which can go on for many more months and years.
Owners like to have a short contract, so they can get someone else if they are not satisfied. Conversely, managers like a longer term so that the difficult start-up work will pay off over time. One year is usually the minimum period. These duties should be clearly and precisely spelled out.